How To Handle Returned Customer Check with related Deposit

Written by
Pattranit Lakhan
Published on
October 30, 2023 at 10:20:47 AM PDT October 30, 2023 at 10:20:47 AM PDTth, October 30, 2023 at 10:20:47 AM PDT

Scenario

A Check is returned due to insufficient funds. The check is related to a Deposit. User does not want to unapply the Deposit on the Payment record nor delete the Payment record.

Solution

1. Unapply thePaymentfrom theInvoice
  • Payment:ClickEdit
  • Go to theApplytab >Applied Tosubtab
  • Invoice: RemoveCheckmark
  • ClickSave
  • Open theInvoiceand note that theStatusof the Invoice should beOpen

2. Create aCustomer Refund
  • Navigate toTransactions>Customers>Issue Customer Refund
  • Customer Name: EnterName
  • Go to theApplytab >Creditssubtab
  • Apply: EnterCheckmarkfor thePaymentthat was unapplied on Step 2
  • Go to theRefund Methodtab
  • Refund Method: Select aPayment Method
  • ClickSave

Note:Below are the transactions that and a sample of what the G/L Impact would look like:1.Invoice> Debit: A/R > Credit: Revenue2.Payment> Debit: Undeposited Fund > Credit: A/R3.Deposit> Debit: Cash > Credit: Undeposited Fund4.Customer Refund> Debit: A/R > Credit: Cash